Verston Holding OÜ made the winning bid of €19.7 million at the public auction of Estonian state-owned road maintenance company AS Eesti Teed.
The Ministry of Economic Affairs and Communications decided to auction off 100 percent of shares in AS Eesti Teed. Over the course of the auction, which ended on Friday, five companies submitted bids for the acquisition of the company's shares, the ministry said.
In second place was a €19.1 million joint bid by KMG Investment OÜ, Frip OÜ and VMBH OÜ. AS Aqua Marina made a bid of €18.6 million, while Eesti Keskkonnateenused submitted a bid in the sum of €17.9 million and AS Signaal TM bid €17.4 million for the company.
The contract of sale for the transfer of shares shall be entered into within two months as of the confirmation of the results of the auction. The transaction enters into force upon receipt of permission from the Competition Authority.
The main area of operation of Eesti Teed is summer and winter road maintenance, construction and repair. The company was founded in 2012 as a result of merger of five road maintenance companies - AS Parnumaa Teed, AS Tartumaa Teed, AS Vorumaa Teed, AS Virumaa Teed ja AS Saaremaa Teed.
The company employs 226 people.
The operating profit of AS Eesti Teed grew to €760,000 in the first half of 2020, compared with a loss of €59,000 in the same period the year before. The company's six-month sales revenue amounted to €12.2 million and the contract portfolio for this year to €25.1 million.
Verston Ehitus OÜ is a road construction service company that started operating in Paide in 2010.
The Ministry of Economic Affairs and Communications on March 9 initiated a public auction with a starting price of €16.9 million. According to the current schedule, the transfer will be completed at the end of the year. The state budget does not currently take into account the revenue from the sale.
The sale transaction is advised by Redgate Capital AS, the audit firm BakerTilly Baltics OU and the EllexRaidla Law Office.
Editor: Helen Wright